The bureau alleges that ITT exploited its students and pushed them into high-cost private student loans that were likely to end in default. The bureau is seeking restitution for victims, a civil fine, and an injunction against the company.

“ITT marketed itself as improving consumers’ lives but it was really just improving its bottom line,” said Richard Cordray, bureau director. “We believe ITT used high-pressure tactics to push many consumers into expensive loans destined to default.”

For-profit colleges benefit when students take out large amounts of loans, regardless of the students’ long-term success, Cordray said.

ITT Educational Services Inc. provides post-secondary technical education. Tens of thousands of students are enrolled online or at one of about 150 institutions in nearly 40 states.

ITT’s tuition costs are among the highest in the country in the for-profit industry, he said. Earning an associate’s degree at ITT can cost more than $44,000. Bachelor’s degree programs can cost $88,000.

That’s significantly higher than the cost of similar degrees at a community college or a public four-year institution, Cordray said.

Most of ITT’s students borrow large sums to pay the high tuition costs and the majority of this money is borrowed from federal student loan programs. But private student loans also provide critical revenue for ITT. Because most ITT students’ federal aid doesn’t cover the full cost of an ITT program, most students face a “tuition gap” requiring them to find other sources of funding.

The bureau’s lawsuit alleges that ITT encouraged new students to enroll at ITT by providing them funding for this tuition gap with a zero-interest loan called “Temporary Credit.” This loan typically had to be paid in full at the end of the student’s first academic year. But ITT knew from the outset that many students wouldn’t be able to repay their Temporary Credit balances or fund their next year’s tuition gap.

The bureau’s lawsuit alleges that between July 2011 and December 2011, ITT pushed its students into repaying their Temporary Credit and funding their second-year tuition gaps through high-cost private student loan programs. Students didn’t know that taking out these high-cost loans would be required to continue their studies.

However, ITT’s CEO revealed in investor information that converting the temporary loans to long-term loans was the company’s “plan all along.”

In Wednesday’s lawsuit, the bureau alleges that ITT:

Pressured students into signing up for predatory loans.

Offered courses whose credits typically didn’t transfer to local community colleges or other nonprofit schools such as public or private colleges.

Mislead students about future job prospects.

Knew that most of its students would ultimately default on their private student loans, projecting a default rate of 64 percent.

The lawsuit is the bureau’s first enforcement action against a company in the for-profit college industry.

To assist student loan borrowers who may be in delinquency or default, see the bureau’s Repay Student Debt interactive tool.

The bureau also recently finalized a rule allowing it to supervise certain nonbank servicers of federal and private student loans. The rule takes effect on March 1.

New York State Attorney General Eric T. Schneiderman announced interim agreements Wednesday with large investment firms to stop their practice of cooperating with analyst surveys administered by some technologically sophisticated clients at the expense of other consumers.

Schneiderman said the practice that can put the market at an unfair disadvantage.

He requested that the firms end their participation in these surveys while he conducted an industrywide investigation into early access to analysts’ opinions.

Last month, Schneiderman announced his office’s agreement with BlackRock, the world’s largest asset manager, to end its practice of surveying Wall Street analysts for their opinions on firms they cover.

The firms have agreed to discontinue cooperating with these surveys and to continue their cooperation with the attorney general’s investigation. The firms also have agreed to not participation in any survey worldwide that relates to companies listed on U.S. exchanges.

“Our markets will only be fair and healthy if everyone plays by the same rules, which is why we will continue to take action against those who provide unfair advantages to elite traders at the expense of the rest of us,” said Schneiderman.

The terminals of the pressure switch can come into contact with the motor housing and electrify the air compressors, posing a shock hazard to consumers, the company and U.S. Consumer Product Safety Commission said. No incidents or injuries have been reported.

This recall involves HDX and Powermate brand two-gallon electric air compressors. Each air compressor has a pair of one-gallon tanks that are stacked on each other.

The air compressors are 120-volts, have an operating pressure maximum of 100 PSI, and offer air delivery of .4 SCFM at 90 psi.

The HDX air compressors are gray with HDX printed in white on the top cylinder. HDX model number/sku numbers are VSP0000201.HDX, VSP0000201.HDX1, and 947282, with serial numbers made up of numbers. The model and serial numbers are printed on a sticker on the back of the top air compressor cylinder.

The Powermate air compressors are red with Powermate printed in white on the top cylinder. HDX or Powermate compressors with a letter in the serial numbers aren’t included. Powermate model numbers include VSP0000201, VSP0000201.01, VSP0000201.KIT, and VSP0000201.NS.

The air compressors were sold at Home Depot and online at homedepot.com (HDX air compressors only), Menards, and other stores (Powermate air compressors) nationwide from June 2010 through October 2013. The cost was $80 and $120.

Consumers should immediately stop using the recalled air compressors and contact MAT Industries for a free repair, the company and commission advise.

For more information, call MAT Industries at 855-922-2300 from 9 a.m. to 5 p.m. CT Monday through Friday, visit www.powermate.com and click on Air Compressors, then VSP0000201, or go to www.homedepot.com and click on Product Recalls for more information.

February 22, 2014

In Consumer Reports’ recent tests of sodas and other soft drinks, 4-methylimidazole, a potentially-carcinogenic chemical byproduct of the production of certain types of caramel color, was found in the samples that listed caramel color as an ingredient.

Twelve brands of sodas and soft drinks from five manufacturers – including Coca-Cola, Pepsi, and Goya – were tested.

“We are concerned about both the levels of 4-MeI we found in many of the soft drinks tested and the variations observed among brands, especially given the widespread consumption of these types of beverages," said Dr. Urvashi Rangan, a toxicologist and executive director of the Consumer Reports Food Safety and Sustainability Center.

Caramel color is used in some food and beverages as a coloring agent. Some types of this artificial coloring contain 4-MeI, which has been recognized as a possible human carcinogen by the International Agency for Research on Cancer.

While there are no existing federal limits on the amount of caramel color allowed in food and beverages, products sold in California that would expose consumers to more than 29 micrograms of 4-MeI in a day are required to carry a warning label under the state’s Proposition 65 law.

Between April and September 2013, Consumer Reports tested 81 cans and bottles of various brands of soft drinks purchased in stores in California and the New York metropolitan region. Twenty-nine additional samples were purchased and tested in December 2013.

In its tests, Consumer Reports found that 12-ounce single servings of two products purchased multiple times during an eight-month period in California – Pepsi One and Malta Goya – exceeded 29 micrograms per can or bottle. Consumer Reports thinks that these levels are too high and the organization has asked the California attorney general to investigate.

After Consumer Reports informed PepsiCo of its test results, the company issued a statement that said that Proposition 65 is based on per day exposure and not exposure per can. It also cited government consumption data that shows that the average amount of diet soda consumed by people who drink it is 100 milliliters per day, or less than a third of a 12-ounce can. For that reason, they believe that Pepsi One doesn’t require cancer-risk warning labels – even if the amount of 4-MeI in a single can exceeds 29 micrograms.

February 21, 2014

I don't know about you, but I'm really frustrated by shopping for the new light bulbs. I haven't been satisfied with the performance of the compact fluorescents that I've purchased and worry about cleaning up the mercury if they break.

Fortunately, I don't have any carpet, so I wouldn't have to cut out a square if one broke on it in my home.

And halogens? I don't know if they're safe. I bought some because I didn't realize they were halogens and took them back to the store.

Then there's the LEDs.

Federal action this week against a company that made false claims about their LED light bulbs sheds some light on the subject.

Here's a report on the claims the company made, where to look to get a refund, and tips on how to buy the new light bulbs:

A federal court has ordered a light bulb manufacturer and its owners to pay more than $21 million for misleading consumers by exaggerating the performance of their LED light bulbs.

The company, Lights of America Inc., sold the bulbs in big box stores including Costco, Sam’s Club, and Walmart.

The defendants initially claimed their LED lamps had a 30,000-hour life and lasted “15 times longer than 2,000 hour incandescent bulbs,” according to the FTC. The defendants revised those claims downward several times, including a statement that their LED lamps had a 12,000-hour life and lasted “6 times longer than 2,000 hour incandescent bulbs.” But, the documents and data the defendants relied upon showed that none of their LED bulbs that were tested lasted beyond a few thousand hours, the FTC said.

In September 2013, the court found that the FTC had proved its case and that the defendants were liable for deceptive marketing.

So best wishes shopping for the new light bulbs. For information about light bulb performance, see the FTC’s Shopping for Light Bulbs.

February 19, 2014

Last year, more than 7 million Americans were in default on a student loan.

When things don’t go according to plan, many student loan borrowers find themselves on the receiving end of a call from a debt collector and have a difficult time understanding their options when trying to find a way out of default.

The Consumer Financial Protection Bureau wants learn more about how collectors try to recover debt, including student loans, as it considers what rules are needed. The bureau wants to make sure that all members in the industry are working with correct information, consumers are informed, and consumers are treated fairly and with dignity.

The agency is working on ways to help borrowers when they fall behind. You can learn about your options and make a plan to get out of default by using Repay Student Debt and if you run into trouble, you can submit a complaint about a student loan debt collector.

You can also watch two short videos, “Catching Up With the Curator,” featuring Bill Allman, the White House curator, to learn about former President Theodore Roosevelt's official portrait and the history of the Presidential Seal.

In addition, you can visit the website of the League of Women Voters to find suggestions on how to make democracy work in America. Two actions are to urge Congress to restore the Voting Rights Act and to support comprehensive immigration reform.

Be sure to take some time today to celebrate American democracy. Although our country faces many challenges in today’s complex world and our democracy could work much better for its citizens, we do have a framework in which citizens can make their voice heard, if they make an effort to do so.

Presidents’ Day is more than a holiday day off or shopping to accumulate more consumer items.

The software’s current settings could cause transistors to heat up, resulting in warning lights coming on and the car slowing down to a limp-home mode. The hybrid system also might shut down causing the car to stall, increasing the risk of collisions.

Toyota will notify owners by first class mail, and Toyota dealers will update the software free of charge.

The recall is expected to begin in late February 2014. Consumers can contact Toyota at 800-331-4331.

Consumers may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 888-327-4236, or go to www.safercar.gov.